The company said strong cash flow enabled it to repurchase $761 million of stock, reduce net total debt by $325 million, and invest $2.0 billion in capital projects over past four quarters.

"We are pleased with our sales and earnings performance in the first quarter, especially in the light of continued economic uncertainty, high unemployment, and intense competition," said Joseph A. Pichler, Kroger chairman and CEO. Calling its 19-month old strategic growth plan "the appropriate response to this economic and competitive environment," Pichler says the company believes the continued enhancement of the plan "will improve our competitive price position in selected categories and markets as we offer even better value to our customers."

Pichler says the company expects to exceed the plan's original goal of $500 million in cost savings by the end of 2003. Through the end of the first quarter, he said Kroger had achieved savings of $377 million.